The Ministry of New and Renewable Energy on Sunday moved to dispel speculation regarding restrictions on financial support for renewable energy initiatives, mentioning that no directive has been issued to halt lending for green energy ventures.
India’s renewable energy sector continues its robust expansion, with non-fossil fuel sources now accounting for half of the nation’s total power generation capacity, a milestone reached five years earlier than initially projected under commitments made during the Paris Agreement.
Current figures through the end of October 2025 show approximately 259 gigawatts of installed capacity from clean energy sources, including a substantial addition of 31.2 GW during the first seven months of this fiscal year.
Recent media coverage suggested that the ministry had instructed financial institutions to suspend funding for renewable projects due to concerns about excessive production capacity.
The ministry has categorically denied these claims.
What the ministry has done, according to official statements, is provide detailed information to financial oversight bodies and major lending institutions, including Power Finance Corporation, Rural Electrification Corporation, and Indian Renewable Energy Development Agency, about current manufacturing capabilities throughout the solar photovoltaic supply chain.
This information encompasses production capacity data for solar panels, cells, silicon wafers, polysilicon materials, and supporting components such as specialised glass and aluminum framing. The goal is to encourage lenders to take a more comprehensive view when assessing funding applications for solar manufacturing plants.
The ministry is urging financial institutions to broaden their investment perspective beyond conventional solar panel assembly operations to include earlier stages of production and component manufacturing.
India’s solar manufacturing sector has experienced remarkable transformation, with panel production capacity surging from a modest 2.3 GW in 2014 to approximately 122 GW currently listed under the ministry’s official registry of approved manufacturers and products.
Centre in its statement reaffirmed its dedication to establishing India as a significant force in the worldwide solar manufacturing landscape while working toward the ambitious target of 500 GW of renewable energy capacity by the decade’s end.
Ministry officials indicated they will maintain ongoing dialogue with industry participants to ensure the sector remains dynamic, inclusive, and prepared for future challenges.
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